Gatos Silver Reports 11% Increase in Q3 Production

By Tamara Parker • Friday, October 11 15:18 • Permanent Link

Gatos Silver, Inc. (NYSE/TSX: GATO) has reported an 11% increase in silver equivalent production in the third quarter of 2024 compared with the same period a year earlier. The company's cerro los gatos ("CLG") mine in Mexico saw a 11% increase in silver equivalent production, with a total of 3.84 million ounces in the third quarter of 2024 compared to 3.46 million ounces in the third quarter of 2023.

The production highlights for the CLG mine on a 100% basis for the third quarter of 2024 include a record mill throughput rate of 3,246 tonnes per day, which is an 11% increase from the third quarter of 2023. Silver feed grades remained consistent between the two periods, but zinc, lead, and gold production increased by 20%, 20%, and 13% respectively compared to the third quarter of 2023, primarily due to higher mill throughput and higher feed grades for zinc and lead.

The company also reported improved annual production and cost guidance for 2024. Silver production is now expected to be between 9.2 million and 9.7 million ounces, representing an increase of 10% at the low end of the range and 5% at the high end. Silver equivalent production is expected to be between 14.7 million and 15.5 million ounces, representing an increase of 9% at the low end of the range and 3% at the high end.

The company has also lowered its by-product all-in sustaining costs (AISC) by 12%, with full year by-product AISC expected to be between $8.50 and $10.00 per ounce of payable silver, compared to the original guidance range of $9.50 to $11.50 per ounce of payable silver.

As of September 30, 2024, the company and the Los Gatos joint venture reported cash and cash equivalents of $116.7 million and $33.9 million, respectively.

Gatos Silver remains focused on operating the Cerro Los Gatos mine and on the growth and development of the Los Gatos district, with continued exploration efforts and resource development drilling expenditures expected to reach $18 million in 2024. Today the company's shares have moved -0.5% to a price of $16.52. If you want to know more, read the company's complete 8-K report here.

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